POMEROY, Ohio — The Federal Deposit Insurance Corporation (FDIC) has fined The Farmers Bank and Savings Company $12,000 for violations of federal flood insurance regulations, according to a newly issued enforcement order.
The penalty stems from the bank’s failure to follow required force-placed flood insurance procedures on 16 loans, which violates the Flood Disaster Protection Act (FDPA) and related FDIC regulations. The FDIC determined that the bank engaged in a pattern of noncompliance, leading to the civil money penalty.
While the bank did not admit or deny the violations, it waived its right to a hearing and agreed to the FDIC’s order in a consent agreement signed on Jan. 14, 2025. The bank is also prohibited from seeking reimbursement for the fine from any third party.
The order does not prevent the FDIC or other regulatory agencies from taking further action against the bank or its affiliated parties in the future. The penalty must be paid to the U.S. Treasury.
The enforcement action was finalized on Jan. 17, 2025, and issued by FDIC Deputy Regional Director Teresa M. Sabanty from the agency’s Chicago office.